Helping real estate clients make a stress-free transition to their new home often involves recommending a company that can help them with their move. But providing that service can quickly become complicated due to all the moving pieces it involves.
To simplify things, realtors may refer clients to a moving broker who can streamline the moving process by bringing all of the pieces together in one place. These brokers connect consumers with packers, movers, and storage companies while providing the expertise needed to make sure all the unique factors involved in a move are considered and addressed.
For realtors who choose to help their clients in this way, it’s important to make sure the recommended broker is properly licensed and committed to carrying out all requirements defined by the law. Recommending anything less can result in problems that are costly to a client and, consequently, damaging to your reputation.
What is a licensed broker?
US law requires moving brokers to be officially registered with the Federal Motor Carrier Safety Administration (FMCSA), an agency of the US Department of Transportation that monitors and ensures compliance with motor carrier safety regulations. Licensed brokers receive a registration number from the FMCSA that must be displayed on every piece of advertising they publish, including their website, online advertisements, and printed materials.
Brokers also must maintain a surety bond or trust fund of $75,000. This requirement ensures that the moving companies that a broker works with will be paid if the broker defaults on their obligation.
Brokers are also required to be transparent about their role in the moving process. They must explain on their websites and other advertising that they are a broker, not a moving company that will be physically moving goods.
Real estate professionals and consumers can determine whether a broker is registered with the FMCSA by visiting www.protectyourmove.gov or calling the FMCSA at (202) 366-9805 for licensing information.
What is a broker required to provide?
Federal law requires brokers to provide consumers with two education documents before booking a move. The first is “Your Rights and Responsibilities When You Move,” which is an FMCSA booklet that explains the rights and responsibilities of consumers and movers.
The FMCSA booklet lists five things in addition to the booklet that a broker should provide to every consumer before a move:
- A written estimate of all costs.
- Information about the mover’s arbitration program.
- A written notice about access to the mover’s tariff, which is a legally binding document that outlines standard rates, fees, and service commitments.
- Information on the process for handling claims.
- The “Ready to Move” brochure published by the FMCSA.
The “Ready to Move” brochure, the second document brokers are required to provide, gives consumers a checklist of steps to take before the move, on moving day, and on the day the moving company delivers the shipment to the new location. It also lists common problems movers may encounter and how to pursue dispute settlement or arbitration if they arise.
How do brokers help ensure a safe move?
In addition to streamlining the moving process, moving brokers can also help ensure common moving pitfalls are avoided. Most importantly, they help ensure that the company handling the actual physical move is vetted and licensed by the FMCSA to provide moving services.
Moving brokers can also help ensure consumers get a reliable written estimate of moving costs. The FMCSA requires movers to provide written estimates for the services they provide, which must include all charges and be signed by the mover and the consumer.
Without getting a solid estimate in advance, which usually involves a physical inspection of the home and its contents, consumers can be surprised on moving day by elevated costs charged due to large household goods, difficult logistics, or other factors. Unfortunately, it’s common in the moving industry for dishonest moving companies to draw consumers in with low estimates, then to tack on additional fees on moving day that significantly elevate costs. Brokers can help consumers avoid companies that operate that way.
Moving is never easy, but connecting with a licensed and experienced broker can ensure it isn’t more difficult than it needs to be. Brokers not only bring valuable experience to the equation but also give consumers access to a larger pool of potential moving companies. Brokers help your client get the right mover — one that can effectively handle their unique requirements — so they don’t need to deal with unwelcome surprises on moving day.
